Market Overview for Tether/Colombian Peso (USDTCOP) on 2025-11-06

Summary
• Price declined from 3876.0 to 3854.0 amid mixed momentum.
• Volume increased during early hours, with 94307.0 traded at 02:15 ET.
• RSI near neutral range, but MACD shows bearish divergence.

Tether/Colombian Peso (USDTCOP) traded between 3865.0 and 3878.0 in the last 24 hours, opening at 3876.0 and closing at 3854.0 as of 12:00 ET. The total volume for the 24-hour window was 1,488,180.0, with a notional turnover of approximately USD 572.7 million, based on average rates. The pair appears to be consolidating around a key support zone.

Structure and formations suggest that 3850.0 is a strong support level, with bearish pressure emerging after a failed attempt to retest prior highs. A bearish engulfing pattern formed at 19:30 ET on 2025-11-05, confirming the shift in sentiment. Doji candles at the 07:00–08:00 ET period suggest indecision in a range-bound market. The 50-period moving average on the 15-minute chart has been bearish since early morning, indicating short-term bearish pressure.

MACD on the 15-minute chart shows a bearish crossover with the signal line, and the histogram is contracting, which may indicate weakening momentum. RSI remains in the 50–55 range, suggesting that the pair is neither overbought nor oversold. However, the divergence between the price and RSI is a cautionary sign. Bollinger Bands are slightly contracted, with the price hovering near the lower band, signaling potential for a rebound or further bearish continuation.

Volume spiked significantly around 02:15 ET (94,307.0), confirming a key price reversal at 3857.0. However, volume has since dropped to very low levels in the late hours, indicating limited participation in the current range. Turnover also dipped below 10,000.0 in the last few hours. A divergence in volume and price could signal fading bearishness or a potential reversal.

Fibonacci retracements show that the 3854.0 level is near the 61.8% retracement from the high of 3878.0 to the low of 3855.0, suggesting that this area is a critical psychological and technical level. A break below 3850.0 could target the 3846.0 level on a 38.2% retracement, while a close above 3860.0 could retest 3865.0–3870.0.

Backtest Hypothesis
The proposed backtesting strategy focuses on bearish engulfing patterns detected in USD/COP, aiming to short the pair after confirmed patterns. While the data source currently fails to recognize USDTCOP, using an equivalent like USDCOP or USD/COP=X (Yahoo Finance format) could allow for an effective backtest. Once a valid ticker is selected, the strategy will sell at the next open and hold for three days. This method could help assess the reliability of bearish engulfing signals in volatile FX/crypto pairs like USD/COP. Given the current USDTCOP pattern formation and volume dynamics, this strategy appears relevant for short-term traders seeking to exploit bearish reversals.